* Hedge fund bought Dell, Xerox in fourth quarter
* Sold out of short position in First Solar
By Katya Wachtel
NEW YORK, Jan 18 Even though David
Einhorn's Greenlight Capital finished 2011 in the black, "never
has so much work gone into making 2 percent," the hedge fund
manager said in a letter sent to investors on Tuesday.
In a year when volatile markets whipsawed the hedge fund
industry, Greenlight outperformed competitors, gaining 2.9
percent in its Greenlight Capital LP fund. The average hedge
fund fell about 5 percent last year.
Greenlight, which bets on stock prices rising and falling,
added to its chest of brand-name technology stocks in the fourth
quarter. It opened a new position in computer maker Dell Inc
DELL.O and reopened a stake in Xerox Corp (XRX.N), the letter
The firm also sold out of one of its most successful bets
ever, exiting its short position in First Solar Inc (FSLR.O).
"This was one of the most profitable shorts in the history" of
the firm, Einhorn wrote.
First Solar shares were up 8 percent in afternoon trading
following the news that Greenlight had closed its bet against
The hedge fund also exited significant long positions in the
fourth quarter, including stakes in CVS Caremark Corp (CVS.N)
and Employers Holdings Inc.
At the end of 2011, Greenlight's three biggest holdings were
Apple Inc (AAPL.O), General Motors (GM.N) and gold.
(Reporting By Katya Wachtel; editing by John Wallace)
((Katya.Wachtel@thomsonreuters.com)(+1 646 223 6203))
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